NOVAGOLD Announces Closing of Galore Creek Transaction
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 1
NOVAGOLD Announces Closing of Galore Creek Transaction
July 27, 2018 - Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (TSX, NYSE American: NG)
(“NOVAGOLD” or “the Company”) is pleased to announce that the transaction with Newmont Mining Corporation
(NYSE: NEM) (“Newmont”), in which NOVAGOLD agreed to sell its 50% interest in the Galore Creek project
(“Project”), owned by the Galore Creek Partnership (GCP) for total consideration of up to $275 million, announced on
July 26, 2018, has closed. As contemplated by the Share Purchase Agreement, NOVAGOLD has received $100 million
and transferred its interest in the Project and the Copper Canyon property to a subsidiary of N ewmont. NOVAGOLD
anticipates applying the proceeds from the sale toward the development of its 50%-owned Donlin Gold project in
Alaska.
Scientific and Technical Information
Some scientific and technical information contained herein with respect to the Donlin Gold project is derived from the
“Donlin Creek Gold Project Alaska, USA NI 43-101 Technical Report on Second Updated Feasibility Study” prepared by
AMEC with an effective date of November 18, 2011, as amended January 20, 2012 (the “Second Updated Fe asibility
Study”). Kirk Hanson, P.E., Technical Director, Open Pit Mining, North America, (AMEC, Reno), and Gordon Seibel, R.M.
SME, Principal Geologist, (AMEC, Reno) are the Qualified Persons responsible for the preparation of the independent
technical report, each of whom are independent “qualified persons” as defined by NI 43 -101.
Clifford Krall, P.E., who is the Mine Engineering Manager for NOVAGOLD and a “qualified person” under
NI 43-101, has approved and verified the scientific and technical information related to the Donlin Gold project
contained in this press release.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company focused on the permitting and development of its 50%-
owned Donlin Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million
ounces of gold in the measured and indicated resource categories , inclusive of proven and probable reserves (541
million tonnes at an average grade of approximately 2.2 grams per tonne), Donl in Gold is regarded to be one of the
largest, highest grade, and most prospective known gold deposits in the world. According to the Second Updated
Feasibility Study (as defined below), once in production, Donlin Gold is expected to produce an average of m ore than
one million ounces per year over a 27-year mine life on a 100% basis. The Donlin Gold project has substantial
exploration potential beyond the designed footprint which currently covers only three kilometers of an approximately
eight-kilometer long gold-bearing trend. Current activities at Donlin Gold are focused on per mitting, optimization
work, community outreach and workforce development in preparation for the construction and op eration of this top
tier asset. With a strong balance sheet, NOVAGOLD is well positioned to stay the course by completing permitting and
advancing optimization efforts at the Donlin Gold project.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
Allison Pettit
Investor Relations Manager
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within
the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than
statements of historical fact, included herein, including, without limitation, statements regarding the application of any proceeds from the sale of
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 2
NOVAGOLD’s interest in Galore Creek and the Copper Canyon mineral property,statements regarding the permitting, potential development,
exploration, construction and operation of Donlin Gold and statements relating to NOVAGOLD’s future operating and financial performance, production
estimates are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”,
“anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”,
“may”, “could”, “would” or “should” occur or be achieved. These forward-looking statements may include statements regarding; exploration potential of
Donlin Gold; mine life and production estimates at Donlin Gold; perceived merit of properties; anticipated permitting timeframes; exploration results and
budgets; mineral reserve and resource estimates; work programs; capital expenditures; timelines; strategic plans; benefits of the project; completion of
transactions; market prices for precious and base metals; or other statements that are not statements of fact. Forward-looking statements involve
various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NOVAGOLD’s
expectations include the uncertainties involving the interpretation of the drill results, the need to obtain permits and governmental approvals; the need
for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the
interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for continued cooperation with Barrick Gold
Corporation for the continued exploration and development of the Donlin Gold property; the need for cooperation of government agencies and native
groups in the development and operation of properties; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather,
non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected
cost increases, which could include significant increases in estimated capital and operating costs; fluctuations in metal prices and currency exchange
rates; and other risk and uncertainties disclosed in NOVAGOLD’s Annual Report filed on Form 10-K for the year-ended November 30, 2017 with the
United States Securities and Exchange Commission, Canadian securities regulators, and in other NOVAGOLD reports and documents filed with
applicable securities regulatory authorities from time to time. NOVAGOLD’s forward-looking statements reflect the beliefs, opinions and projections on
the date the statements are made. NOVAGOLD assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or
other factors, should they change, except as required by law.
Cautionary Note to United States Investors
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of
U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been prepared in accordance with
Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM)—CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (“CIM Definition
Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the
United States Securities and Exchange Commission (SEC), and resource and reserve information contained herein may not be comparable to similar
information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource” does not equate to the term
"reserves”. Under U.S. standards, mineralization may not be classified as a "reserve” unless the determination has been made that the mineralization could
be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the
inclusion of information concerning "measured mineral resources”, "indicated mineral resources” or "inferred mineral resources” or other descriptions of the
amount of mineralization in mineral deposits that do not constitute "reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned
not to assume that all or any part of “measured” or “indicated resources” will ever be converted into “reserves”. Investors should also understand that
"inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Under
Canadian rules, estimated "inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Disclosure of
"contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of
NI 43-101 for identification of "reserves” are also not the same as those of the SEC, and reserves reported by NOVAGOLD in compliance with NI 43-101 may
not qualify as "reserves” under SEC standards. Donlin Gold does not have known reserves, as defined under SEC Industry Guide 7. Accordingly, information
concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S.
standards.